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Globe and Mail
6 days ago
- Business
- Globe and Mail
Can AngloGold Ashanti Maintain Its Strong Free Cash Flow Growth?
AngloGold Ashanti plc ( AU ) delivered an impressive seven-fold increase in free cash flow to $407 million in the first quarter of 2025. The jump in free cash flow was primarily attributed to higher gold prices, which added $544 million, while increased volumes accounted for a further $246 million. Gold production and sales from managed operations were bolstered by the first-time contribution from the recently acquired Sukari Gold Mine in Egypt and solid output improvements at both Siguiri and Tropicana. Net cash inflow from operating activities was $725 million in the quarter, marking a 188% increase year over year from $252 million. This strong performance was primarily driven by a on higher prices and sales volumes. However, some of these gains were offset by higher volume-related operating costs, reduced dividends from joint ventures and increased tax payments. After accounting for capital expenditure, loan repayments from Kibali and dividends paid to non-controlling shareholders, AngloGold Ashanti generated a free cash inflow of $403 million. The company closed the quarter with approximately $3.0 billion in liquidity, including $1.5 billion in cash and cash equivalents. Adjusted net debt fell 60% year over year to $525 million, with the adjusted net debt-to-EBITDA ratio improving to 0.15x from 0.86x. AngloGold Ashanti remains focused on maintaining a strong and flexible balance sheet. In 2024, the company had also demonstrated strong performance with free cash flow reaching $942 million, up 764% from 2023, primarily due to favorable gold pricing. For 2025, AngloGold Ashanti projects gold production of 2.9-3.225 million ounces, indicating 9–21% growth over the prior year. Higher production, combined with the rally in gold prices this year as well as the company's efforts to lower costs, is expected to drive further gains in cash flow this year. Newmont Corporation NEM achieved a record first-quarter free cash flow of $1.2 billion, marking a significant turnaround from a negative $74 million in the same period a year ago. This substantial improvement came on the back of Newmont's enhanced operational efficiency and the strength of its Tier 1 portfolio. Strong free cash flow positions Newmont to strengthen its balance sheet and pursue strategic growth investments. Barrick Mining Corporation B reported a free cash flow of $375 million for the first quarter, a nearly 12-fold year-over-year rise. The surge reflects Barrick's higher operating cash flows driven by an uptick in realized gold and copper prices. Barrick reduced net debt by 5% during the quarter, leveraging healthy free cash flow generation. AU's Price Performance, Valuations & Estimates AngloGold Ashanti's stock has skyrocketed 125% year to date, outperforming the Zacks Mining – Gold industry's 54.2% growth. During this time, the Basic Materials sector has risen 13.6% and the S&P 500 has rallied 6.8%. AU is currently trading at a forward 12-month earnings multiple of 10.49X, a discount to the industry average of 12.46X. The stock has a Value Score of B. The Zacks Consensus Estimate for AngloGold Ashanti's 2025 sales is $8.85 billion, indicating 52.8% year-over-year growth. The consensus mark for the year's earnings is $4.99 per share, indicating year-over-year growth of 125.8%. The Zacks Consensus Estimate for 2026 sales implies 2.3% year-over-year growth. The same for earnings indicates a decline of 1.3%. EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below. AU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report AngloGold Ashanti PLC (AU): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report
Globe and Mail
14-07-2025
- Business
- Globe and Mail
Can AngloGold's Cost Discipline Help It Maintain Edge Over Peers?
AngloGold Ashanti plc AU continues to navigate industry-wide inflationary pressures and manages to deliver resilient cost performance, backed by its Full Asset Potential (FAP) program and increased cost vigilance at the site level. AU reported a 4% year-over-year increase in group total cash costs to $1,223 per ounce in the first quarter of 2025. But digging deeper, the increase reflected a 5% rise in inflation across its operating jurisdictions and a 5% uptick in royalty costs linked to the higher gold prices. Overall, the company saw a 7% increase in market-driven costs. Managed operations saw a 2% year-over-year decline in total cash costs per ounce despite increases in royalties. This was driven by the inclusion of Sukari following the Centamin acquisition in November 2024 and steady performance at Siguiri. These gains were partially offset by operational challenges and a temporary plant stoppage at Iduapriem. Non-managed joint ventures experienced cost pressures, with total cash costs soaring 59% year over year to $1,325 per ounce. This was due to lower gold production, higher royalties and increased open pit volume-related operating costs at Kibali. All-in sustaining costs per ounce (AISC) for the group inched up 1% year over year to $1,640 per ounce in the quarter. At managed operations, AISC per ounce dipped 2% reflecting the positive impact of Sukari's inclusion, while AISC at non-managed joint ventures increased 37% due to weaker operational performance at Kibali. For 2025, AngloGold projects group total cash costs at $1,125-$1,225 per ounce, and AISC between $1,580 and $1,705 per ounce. Both ranges indicate a 2% increase at the midpoint from the year-ago reported levels. The company remains focused on improving its position on the cost curve, leveraging the FAP program to enhance operational efficiency and productivity offsetting inflationary impacts. Its cost management appears effective, with only a 1% rise in average real cash costs over the timeframe between first-quarter 2021 and first-quarter 2025. Its peer group, which includes major gold miners like Barrick Mining Corporation B and Newmont Corporation NEM, has seen a more than 20% spike in average real cash costs. Newmont's gold costs applicable to sales rose 16% year over year to $1,227 per ounce in the first quarter. AISC was $1,651 per ounce, reflecting a roughly 15% year-over-year increase. The rise was attributed to a decline in production due to non-core asset divestments as Newmont shifts its focus to Tier 1 assets. Barrick Mining saw a 22% sequential increase in AISC to $1,775 per ounce in the first quarter due to operational challenges, higher total cash costs per ounce and an uptick in mine site sustaining capital expenditure. Lower production due to the suspension of operations at Barrick's Loulo-Gounkoto mine also contributed to the rise. AU's Price Performance, Valuations & Estimates AngloGold Ashanti's stock has skyrocketed 104% year to date, outperforming the Zacks Mining – Gold industry's 53% growth. During this time, the Basic Materials sector has risen 13.7% and the S&P 500 has rallied 5.9%. AU is currently trading at a forward 12-month earnings multiple of 9.51X, at a discount to the industry average of 12.62X. The stock has a Value Score of B. The Zacks Consensus Estimate for AngloGold Ashanti's 2025 sales is $8.85 billion, indicating 52.8% year-over-year growth. The consensus mark for the year's earnings is $4.99 per share, indicating year-over-year growth of 125.8%. The Zacks Consensus Estimate for 2026 sales implies 2.3% year-over-year growth. The same for earnings indicates a decline of 1.3%. EPS estimates for 2025 and 2026 have been trending north over the past 60 days, as seen in the chart below. AU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngloGold Ashanti PLC (AU): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis Report
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Kibali, Africa's Largest and Greenest Gold Mine, Continues to Deliver Growth
All amounts expressed in US dollars KINSHASA, Democratic Republic of Congo, July 02, 2025 (GLOBE NEWSWIRE) -- Barrick Mining Corporation (NYSE:B)(TSX:ABX) – Drilling results from the ARK-KCD corridor continue to strengthen confidence in its scale and continuity, demonstrating the potential to host significant additional orebodies and further extend the life of mine at Kibali, Africa's biggest and greenest gold mine. Speaking at a media briefing in Kinshasa today, Barrick president and chief executive Mark Bristow said the work on the ARK-KCD system is revealing a coherent geological structure — with mineralization expanding laterally and down plunge — that could significantly grow Kibali's reserve base within the existing footprint. 'Kibali was built with a long-term view and has consistently delivered across production, partnerships and reserve growth. We've replaced every ounce we've mined and more since Kibali poured its first gold in 2013, and the ARK-KCD corridor shows that there's still much more to come,' he said. Kibali continues to contribute meaningfully to the Congolese economy with in-country investment now surpassing $6.3 billion, including $3.1 billion in payments to local contractors and partners. The mine remains the single biggest economic contributor to the north eastern DRC, spanning the Haut-Uele and Ituri provinces. The Kalimva, Ikamva and Ndala satellite pits are being mined under contracts with local businesses, reinforcing Kibali's strong commitment to developing local content. More than 700 Congolese companies are supported through procurement and capacity-building initiatives and all tenders are published jointly by the mine and the DRC's subcontracting regulator, ARSP, in line with best practice transparency. 'Kibali is more than a mine. It's a partnership that anchors the regional economy. It's Congolese-led, Congolese-supplied and built to last. We're proud of the model we've created here — one that delivers shared value every step of the way,' Bristow said. Ongoing operational improvements in the underground mine are expected to deliver material productivity gains from the third quarter with a focus on long-term cost efficiency and performance optimization. Additionally, the commissioning of the 16MW solar plant with an integrated Battery Energy Storage System (BESS) has been completed, raising renewable energy use to 85% with the site operating on 100% renewable energy for six months of the year. 'This is what the energy transition looks like in practice. It's a benchmark not just for Africa but for the global mining industry,' he said. Biodiversity conservation also remains central to Barrick's sustainability strategy. Working with the Congolese Institute for Nature Conservation (ICCN) and African Parks (AP), preparatory work is underway to introduce an additional 64 white rhinos into the Garamba National Park by the end of this year. This follows the successful reintroduction of 16 rhinos in 2023 and forms part of a long-term partnership to restore and nurture biodiversity in the region. Leadership and capacity building continued through the Barrick Academy with 170 Kibali employees attending training during the second quarter, delivering another tangible investment in the career advancement of Congolese mining professionals. On the community front, 41 out of 44 projects funded through the 0.3% community development fund have now been completed, delivering essential infrastructure, education and healthcare support. At the same time, execution of the Cahier des Charges is progressing well, with $4.8 million invested to date. 'Kibali is our blueprint for sustainable growth in the DRC. Built on a foundation that is technically sound, socially rooted, and environmentally responsible, it reflects our long-term vision. The experience and lessons gained here in one of the world's toughest mining environments will guide us as we look to expand our in-country portfolio to include not just more gold but also copper projects,' Bristow said. Enquiries: DRC country manager Cyrille Mutombo +243 812 532 441 Investor and Media Relations Kathy du Plessis +44 20 7557 7738 Email: barrick@ Website: Cautionary Statement on Forward-Looking Information Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes 'forward-looking statements'. All statements, other than statements of historical fact, are forward-looking statements. The words, 'expect', 'plan', 'opportunities', 'develop', 'project', 'progress', 'continue', 'continued', 'deliver', 'positioned', 'additional', 'becoming', 'potential', 'prospective', 'focus', 'ongoing', 'working', 'will', and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: Barrick's forward-looking production guidance potential and anticipated production growth from Barrick's organic project pipeline and reserve replacement; Kibali's performance and delivery on its 2024 business plan; potential life of mine extensions and the ability to extend Kibali's Tier One status; Kibali's potential to replace reserves net of depletion; Barrick's exploration strategy and growth opportunities at Kibali, including the potential for further discoveries; Barrick's commitment to the Democratic Republic of Congo ('DRC') and strategy, plans, targets and goals in respect of environmental and social governance issues, including local community development and employment, climate change, renewable energy initiatives, health and safety and biodiversity initiatives; and expectations regarding future price assumptions, financial performance and other outlook or guidance. Forward-looking statements are necessarily based upon a number of estimates and assumptions, including material estimates and assumptions related to the factors set forth below that, while considered reasonable by Barrick as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity); risks associated with projects in the early stages of evaluation and for which additional engineering and other analysis is required; risks related to the possibility that future exploration results will not be consistent with Barrick's expectations, that quantities or grades of reserves will be diminished, and that resources may not be converted to reserves; risks associated with the fact that certain of the initiatives described in this press release are still in the early stages and may not materialize; changes in mineral production performance, exploitation and exploration successes; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; the speculative nature of mineral exploration and development; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law in the DRC; disruption of supply routes which may cause delays in construction and mining activities, including disruptions in the supply of key mining inputs due to the invasion of Ukraine by Russia and conflicts in the Middle East; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; risks associated with artisanal and illegal mining; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices; expropriation or nationalization of property and political or economic developments in the DRC or other countries in which Barrick does or may carry on business in the future; risks relating to political instability in the DRC and certain other jurisdictions in which Barrick operates; timing of receipt of, or failure to comply with, necessary permits and approvals; non-renewal of key licenses by governmental authorities; failure to comply with environmental and health and safety laws and regulations; increased costs and physical and transition risks related to climate change, including extreme weather events, resource shortages, emerging policies and increased regulations relating to related to greenhouse gas emission levels, energy efficiency and reporting of risks; Barrick's ability to achieve its sustainability goals, including its climate-related goals and greenhouse gas emissions reduction targets; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; the liability associated with risks and hazards in the mining industry, and the ability to maintain insurance to cover such losses; damage to Barrick's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to Barrick's handling of environmental matters or dealings with community groups, whether true or not; risks related to operations near communities that may regard Barrick's operations as being detrimental to them; litigation and legal and administrative proceedings; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges, tailings dam and storage facilities failures, and disruptions in the maintenance or provision of required infrastructure and information technology systems; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; risks associated with working with partners in jointly controlled assets; risks associated with Barrick's infrastructure, information technology systems and the implementation of Barrick's technological initiatives, including risks related to cybersecurity incidents, including those caused by computer viruses, malware, ransomware and other cyberattacks, or similar information technology system failures, delays and/or disruptions; risks related to competition in the mining industry; employee relations including loss of key employees; availability and increased costs associated with mining inputs and labor; and risks associated with diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements, and the risks that may affect Barrick's ability to achieve the expectations set forth in the forward-looking statements contained in this press release. Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
